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    Economy

    China seeks to expand cross-border ties with Myanmar beyond agriculture(2)

    1
    2016-08-17 09:09Global Times Editor: Li Yan

    Cross-border connections

    Agriculture cooperation between Myanmar and China dates back to the early 1990s, when Myanmar's oppressive military junta at the time closed the country off to most of the world.

    Agriculture has become a key driver of Myanmar's economy. In 2015, the sector accounted for 32 percent of Myanmar's GDP, and about 50 percent of its jobs, according to the Taiwan-headquartered Food and Fertilizer Technology Center, which cited a research note in April by Thanda Kyi, director of the Department of Planning with Myanmar's Ministry of Agriculture, Livestock and Irrigation.

    China is the largest market for Myanmar watermelons, which generated the most foreign exchange, according to a report posted on China's Ministry of Commerce website, citing a July 10 report by the Yadanabon, a state-run Burmese-language newspaper based in Mandalay.

    The fact that China is the major market for Myanmar's agriculture products helps explain why it plays a key role in the development of the latter country's agriculture industry.

    Although Western countries have been nuzzling up to the once-isolated country after Aung San Suu Kyi's National League for Democracy took over in late 2015, Myanmar's agricultural industry continues to cultivate close ties with China, Yin said.

    When officials from Dehong in Yunnan Province such as Yin occasionally meet with Myanmar's commerce minister, the discussion always focuses on agriculture.

    Myanmar's commerce authorities hope to upgrade the agriculture sector, so they are encouraging more Chinese investors to come in and set up food processing plants, Yin said.

    Ruili officials believe that agriculture is something that China can use to bolster ties with the new government, paving the way for greater cooperation in other areas such as transportation.

    "As Myanmar's agriculture develops, it will need to transport its products to more countries and regions. When that happens, local people will learn the importance of the China-Myanmar railroad, which not only can help them rapidly export crops to China, but also to India," Yin told the Global Times.

    Seeking support

    There are still barriers to obstruct the further development of cross-border agriculture. "At present, agriculture cooperation deals are mainly signed between local governments or among individuals, which are unstable," Li told the Global Times on August 8.

    Ruili government officials have called for specific guidelines and support from the governments of each country.

    Myanmar's livestock inspection system also remains immature, so China is going to set up an inspection station on its side of the border in September to check imported cattle, Li said.

    In addition, Chinese farmers like Duan have complained that he has had trouble getting loans from banks either in China or Myanmar.

    Despite the strong demand for Myanmar fruits in China, Duan who now leases more than 2,667 hectares from farmers in Mandalay, the second largest city in Myanmar, still has no plans to expand his watermelon business given insufficient funding.

      

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